Lotto inaugurates new factory to nearly triple production capacity

Express Leather Products Limited, the local licensee of Italian brand Lotto and UK’s Lee Cooper, has officially launched a new factory in Kapasia, Gazipur, marking a major step forward in its bid to boost production and reduce reliance on imports. The new facility, part of a Tk100 crore expansion plan, is expected to nearly triple the company’s footwear production capacity within the next two years.

Managing Director Kazi Jamil Islam told The Business Standard that this expansion will allow the company to offset rising import costs-driven largely by a volatile dollar rate-and strengthen its position in Bangladesh’s rapidly growing branded footwear market. By increasing local value addition and embracing full-scale manufacturing, Lotto Bangladesh aims to make its products more affordable and competitive.

Importing fully finished shoes incurs nearly 130% in duties, compared to just 35% for raw materials used in local production. This cost advantage, along with growing demand for international brands among Bangladeshi consumers, has encouraged Lotto to invest more in domestic manufacturing.

The branded segment now commands about 20–25% of the $2 billion local footwear market, doubling its share from two decades ago. Lotto Bangladesh currently operates 220 outlets and partners with over 1,000 distributors, generating more than Tk300 crore in annual revenue. The company is targeting Tk800 crore in revenue within five years.

Jamil’s journey began humbly in 2007 with only Tk15 lakh and 35 workers in Tongi, operating second-hand machines. By reinvesting profits and building strategic partnerships-first with Lotto in 2011 and then Lee Cooper in 2019-he expanded the factory to 90,000 square feet and diversified into apparel and accessories.

The new 23-bigha factory site in Kapasia is not just about scaling production. It represents a broader vision: creating over 1,000 new jobs, particularly for local women, and building a green, worker-friendly space with housing, healthcare, and education facilities.

Already partially operational, the new plant has launched a dedicated line to produce lightweight, water-resistant footwear with an annual capacity of one million pairs. Jamil emphasized that both quality and affordability are at the core of their brand, which has gained a loyal following across different income groups.

In addition to expanding its domestic footprint, the company is also setting its sights on exports, buoyed by successful test shipments. With a presence in over 110 countries through other Lotto licensees, the export potential looks promising.

As the company continues to scale, it is also developing its own brand, "The Express", alongside existing Lotto and Lee Cooper offerings, aiming to carve out a unique identity in the competitive footwear landscape.